The Insider’s Guide to Government Incentives
Federal and State governments provide various ways to support business expansion in the form of grants, low interest loans, loan guarantees, tax incentives and bonds. Familiarize yourself with the options available so that you can identify programs that complement the criteria found in your project.
For grants in particular, the process begins with doing your homework.
- Educate yourself on grant writing techniques.
- Locate potential grants by reading eligibility requirements.
- Investigate the grant cycle – Is it annual or open-ended?
- Read examples of past applications from the grantor. Many programs post this information to help new applicants understand what a successful application includes.
In Pennsylvania, the Redevelopment Assistance Capital Program (RACP), or “R-CAP”, is a common grant program with the ability to double a probable budget by matching funding. However, adhering to compliance requirements is often a daunting process.
Be aware of the following information when considering RACP as a funding option:
- Grant awards are evaluated on the Project’s social and economic impact; will it create new jobs?
- RACP is a reimbursable funding source for “eligible” RACP program costs; you must spend the money first.
- RACP is a “matching program” where you are required to match the grant dollars on a 2:1 basis (two match dollars for every grant dollar).
Common hurdles are:
- Not having an experienced grant writer.
- Not having sufficient knowledge to submit reporting documents.
- Not having the proper documentation for reimbursement requests.
Retain knowledgeable consultants to obtain funding and to ensure that reimbursement submissions are compliant.
We hope that you found this article useful. Look for the continuation of “The Insider’s Guide to Government Incentives” in our next newsletter. For more information go to – https://www.grants.gov/web/grants/learn-grants/grants-101.html
Avison Young – Philadelphia